European Steel Prices Slide, But Will They Stay There?
Sources tell MetalMiner that lower seasonal demand has continued to push hot-rolled coil prices down in northern Europe since late June. In terms of steel prices, this means that mills are now quoting €540–550 ($625–640) per metric ton ex-works for August rolling and September delivery, down from €570 ($660) reported on June 23. It is also important to note that cold rolled coil typically carries a premium of about €100 ($115) per metric ton.
Meanwhile, import prices have already dropped below €500 ($580). In fact, sources say that at least one transaction from Indonesia occurred at €490 ($570) per metric ton, cost and freight to European ports for October shipment. In late June, sources told MetalMiner that offers and transactions for material from Southeast Asia ranged between €505–510 ($585–592).
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The CBAM and a Closer Look at Current Steel Prices
Despite the lower domestic steel prices, the sources expressed little concern and expected a rebound in August and September as workers return from Europe’s summer holidays.
“I feel that it’s a sales push,” one source commented, referring to the lower European prices, and confirming that mills were simply trying to boost sales. With the January 1 deadline approaching, concerns over the Carbon Border Adjustment Mechanism (CBAM) are also likely to support higher steel prices, even with Asian imports falling below €500.
“There is no clear definition of the benchmark,” one source noted, specifically referring to the amount of carbon assigned per ton and how much it will cost. They added that this ambiguity will likely drive end users toward the domestic market to avoid writing a “blank check.” European authorities could begin retroactively collecting CBAM payments by 2027 if buyers make purchases without fully understanding the benchmarks. “They’ll have to buy European,” another trader stated.
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Tata Steel Decarbonization Begins
Meanwhile, in the United Kingdom, Tata Steel announced on July 14 that it had begun construction on a new electric arc furnace at its Port Talbot works in Wales as part of its £1.25 billion ($1.7 billion) decarbonization plan. The scheme includes shutting down both blast furnaces and closing the converter shop at the site.
The company said it expects to commission the new furnace in late 2027. It will have a crude steel capacity of 3 million metric tonnes per year, a reduction from the existing 5 million tonnes produced via blast furnace/basic oxygen furnace technology. Tata first announced the plan in September 2023 after securing a £500 million ($670 million) support package from the UK government.
With steel prices, volatility is the name of the game. Do you have a steel buying strategy that can handle the ups and downs?
